CRE debt origination may have reached a bottom, with volume down only slightly at 4.5% year-over-year during the first half after steeper declines in 2022 and 2023, according to Newmark's Q2 Capital Markets report.
A small decline in refinancings weighed on overall originations, but sale financing made up some of the deficit, the report said. In addition, anticipation of rate cuts impacted originations during the second quarter. Monthly originations in May were above the year-ago pace buoyed by sentiment about future rates.
Industrial originations were up 28% for the quarter and 67% over the 2017-2019 average. Meanwhile, office originations were down 62%, retail originations were down 32% and multifamily originations were down 28%.
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